Financial Advice Transaction 0220/0230

Financial advice transaction is used for fund transfer and corresponding account processing among acquirer, CUPS and issuer.

This transaction applies to following situations: Pre-authorization Completion (advice) initiated by acquirer, settlement advice sent to issuer by CUPS, MO/TO settlement advice, Refund (online) initiated by acquirer, Financial advice transaction is involved in settlement; Pre-authorization completion (advice) initiated by acquirer, Settlement Advice sent to issuer by CUPS, Refund (online) initiated by acquirer and MO/TO settlement advice are involved in reconciliation.

Financial advice transaction does not initiate reversal. When the advice sender cannot receive response, store-and-forward shall be adopted but it cannot be resent across the settlement date.

5.1.9.1 Pre-authorization completion (advice), MO/TO Pre-Authorization Completion (advice)

For approved pre-authorized transaction, in addition to using pre-authorization completion (request) request to settle payment, pre-authorization completion (advice) can be used to complete payment settlement according to relevant business rules.

Pre-authorization completion (advice) is the advice transaction switched via CUPS and issuercannotreject thepre-authorizationcompletion(advice).The above-mentioned content is also applicable to MO/TO Pre-Authorization Completion (advice).

5.1.9.1.1Normal Transaction Flow



 1－Pre-authorization completion ( advice) (0220) sent to CUPS by acquirer

 2－Response (0230) sent to acquirer by CUPS

 3－Settlement advice (0220) sent to issuer by CUPS

 4－Response (0230) sent to CUPS by issuer

Acquirer Issuer

Figure 10 Flow of Pre-authorization Completion (Advice)

5.1.9.1.2Abnormal Transaction Flow

If the sender cannot send pre-authorization completion (advice) transaction to the receiver or does not get the receiver’s response to the transaction, it will save the advice in the store-and-forward queue for storing and forwarding.

Sender

Receiver 1

3 2

 1－Pre-authorization completion (advice) sent to the receiver by the sender cannot be sent out due to failures.

 2－After recovery of the sender,, pre-authorized completion ( advice) sent to receiver by the sender.

 3－Response to pre-authorized completion (advice )by the receiver.

Figure 11 Abnormal Flow of the Pre-authorized Completion (Advice)

5.1.9.2 Settlement Advice, MO/TO Settlement Advice

It is the advice in which CUPS forwards dual-message request to single-message issuer while doing single/dual message conversion, and it is the fund settlement advice for the previously approved pre-authorization transaction. MO/TO settlement adviceisthe

settlementadvicefor thepreviouslyapprovedMO/TO pre-authorization.Its settlement procedure is the same as regular settlement advice.

Within overtime period if issuer receives settlement advice after cutoff sent by CUPS prior to cutoff; it shall be able to handle settlement advice transactions across settlement dates within overtime period.

In case that acquirer adopts dual message processing mode and issuer adopts single message processing mode, CUPS will provide conversion of transaction modes. CUPS will convert records in dual message clearing files into settlement advices record by record and send them to issuer. Issuer cannot reject settlement advice in online

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Acquire r Issuer

transactions or if issuer needs to reject settlement advice, it could be completed via chargeback.

Not all banks are needed to support settlement advice. If issuing bank adopting single message transaction mode supports pre-authorization transactions, it shall support settlement advice transaction.

5.1.9.2.1Normal Transaction Flow

Acquirer sends dual-message clearing files to CUPS, and CUPS will convert the files into settlement advices and send them to the single-message issuer. Issuer sends response to CUPS.

Acquirer

CUPS Issuer

2

3 1

 1－Dual-message clearing file sent to CUPS by acquirer

 2－Fund settlement advice sent to issuer by CUPS

 3－Response sent to CUPS by issuer

Figure 12 Flow of the Settlement Advice

5.1.9.2.2Abnormal Transaction Flow

When failures occur at issue side and CUPS cannot send the settlement advice to issuer, CUPS should put the advice in Store-and-forward queue for storing and forwarding.

1

CUPS

3

 1－Dual-message clearing file sent to CUPS by acquirer

 2－CUPS cannot send the settlement advice to issuer due to some reason

 3－Settlement advice re-sent by CUPS

 4－Response re-sent to CUPS by issuer

Figure 13 Abnormal Flow of Settlement Advice

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Issuer

5.1.9.3 Refund (Online)/ MO/TO Refund (Online)

It is the procedure that merchants refund the deducted fund to cardholder’s original debit account due to commodities’ return or service cancellation, and it includes total and partial refund. The procedures of MO/TO refund (online) is the same as that of normal refund (online).

Once issuer receives refund transaction (on-line), the transaction shall be approved unconditionally and it will be involved in reconciliation.

Within overtime period, if after CUPS cutoff, the issuer receives refund transaction (on-line) sent by CUPS prior to cutoff, the issuer shall proceed it across settlement date within overtime period.

The transaction is an advice transaction that needs to be switched via CUPS.

5.1.9.3.1 Normal Transaction Flow

Acquirer

 1－Refund advice (0220) sent to CUPS by acquirer

 2－Response (0230) sent to acquirer by CUPS

 3－Advice (0220) sent to issuer by CUPS

 4－Response (0230) sent to CUPS by issuer

Figure 14 Flow of Refund Transaction (on-line)

5.1.9.3.2 Abnormal Transaction Flow

If the sender cannot send refund transaction (on-line) to the receiver, or it does not receive the receiver’s response to the refund transaction (on-line) , the sender shall put the refund transaction (on-line) in store-and-forward queue for storing and forwarding.

 1－Refund advice cannot be sent to the receiver by the sender due to failures.

 2－After recovery of the sender, refund advice re-sent to the receiver by the sender.

 3－Receiver’s response to refund advice.

Figure 15 Abnormal Flow of Refund Transaction (on-line)

Special Note: participants may log onto CDRS to initiate manual refund, and please refer to Chapter 8 Explanation on Dispute Resolution for the processing flow.